Specifically, when women are on the board of directors or in a leadership role, the discussion is richer, the decision-making process is better, management is more innovative and collaborative, and the organization is stronger. They bring new perspectives, consider different issues when making decisions, and tend to use a more collaborative leadership style, increasing win-win problem solving. At the same time, women are also more likely than men to ask tough questions and ask for more detail and substantiation.

Gender diversity has emerged as a driver of strong company performance. There has been a trend of steady increase in the number of women on corporate boards. Investing in companies that advance women can be part of a smart investment strategy.

To help investors identify the companies that advance women, the Pax Global Women’s Leadership Index was created earlier this year. This is the first broad-market index of the highest-rated companies in the world in advancing women’s leadership, as rated by Pax World Gender Analytics, and that meet key environmental, social and governance (ESG) standards, as rated by MSCI ESG Research. Pax World has also opened a new mutual fund, the Pax Elevate Global Women’s Index Fund, which follows the Pax Global Women’s Leadership Index.